Case Summary

In this case we read about Sekar Group a Company previously known as Harry Susilo PVT Ltd based in
Surabaya Indonesia. Its employee strength grew from just 5 to over 20000 in just about 60 years which
was an impressive feat. It had it legs in multiple industries like food, real estate and aquaculture among
many others. It was founded by Harry Susilo born in Indonesia and soon after his father’s death was
burdened with the care of his mother and 10 siblings. He considered his siblings as the second
generation and treated them like a father and his siblings’ children as the third generation.

His few concerns about the future of the company was that everyone considered him a role model and
it made replacing him a difficult task, secondly his experience was the longest and most unique from the
other siblings. So the chances of finding a successor in the third gen was particularly difficult.

Two major breakthroughs in Sekar Group was firstly in 1968 when in collaboration with Toyo Moenka a
Japanese businessman he created cold storage facilities which would be owned by him five years later.
Secondly in the 1980s Sekar Pvt Ltd made another breakthrough by becoming supplier of partially
processed shrimp chips.

Though even as a big company Sekar Ltd didn’t join aquaculture in the start showing that they had a
sense of ethical responsibility as well but with new sea filtration qualities they entered this industry.

Susilo was also very responsible towards his siblings by providing them education in top universities and
didn’t stop them from entering the company and also gave them 50 percent of shares equally in 1988
showing a sense of equality. But during a economic crisis Harry Fong Jaya had caused a major financial
loss to the company but he said that his eldest brother Harry was not angry with him.

Susilo had two daughters Finna Huang and Fanni Susilo and the elder sister Finna was regarded as
Boston’s University youngest masters graduate at an age of 21. Susilo was fair and didn’t just give posts
to family members in the company just because they were related and so everyone knew just they
would have to put in effort to become the head of Sekar Pvt Ltd in the future.

Issues

1. Harry Susilo being lenient with his family members when it came to financial loss shows that he
is being non ethical when it comes to his family members. For example he wasn’t angry on his
brother Harry Fong Jaya caused major loss to the company and wasn’t strickened or even given a
warning and would have been a different scenario if it was someone who wasn’t part of the
family.
2. Finding someone who has the experience and the willingness to run the company similar to his
style and dedication. Also making the next successor by making an ethical decision and not an
emotional one.

Recommendations

1. Harry Susilo should be a bit stricter with his family while making business decisions as well as
should be more ethical while making these kind of decisions and should take them regarding the
benefit and welfare of the company.
2. Finding a new substitution for Harry Susilo should not be just taken according to the age and
relationship to him but according to experience and success of someone working in the
company.
3. Top alternatives as next President for Sekar Pvt Ltd
a. Finna Huang- Eldest daughter of Harry Susilo educated from Boston University and had
created two successful startups and she was physically active and wanted to achieve
perfection in whatever thing she does. She joined Sekar in 2016 and was appointed as
commissioner of Pt Sekar Bumi Tbk.
b. Welly Gunawan- Child of Susilo’s fourth sibling Inne Gunawan and he completed his IBMT
program in 2000 and joined Sekar just after in 2001 as a credit analyst. He has worked in
different subsidiary companies in Sekar at different positions and was marketing director in
2014 and he was also President of the family’s third gen committee.

According to me even though Finna Huang is the eldest daughter it might not be wise and
ethically right just to give her the position because she is Harry Susilo’s daughter.
Though Welly Gunawan was the not the eldest or Harry Susilo’s child it was the practical
decision to make him the next president because he was working in the company the
longest and had also worked in different subsidiaries of Sekar Pvt Ltd and in different
positions making him the best choice for this position.